1. Consider a bond which has 10-years remaining until maturity. The bond has a face value of $1,000, and pays an annual coupon of 8%. The bond is currently priced at $1,100. What is the Yield To Maturity for this bond? How could this be solved on a TVM solver B. Suppose that in one year, interest rates remain unchanged. What will the price of this bond be at that point? (Note: there will now be 9 more years until maturity.)
2. C. What return will you have received from owning the bond? (Return is total ending value (price plus any coupons received) divided by initial price, minus 1.)